The Islami Bank Bangladesh has made tremendous progress since the July uprising last year, significantly expanding its customer base while clearing all its debt to the central bank, revealed its managing director Md Omar Faruk Khan.
“The principal account, previously in deficit, now stands at nearly Tk 8,000 crore, with the bank clearing the Tk 2,395 crore owed to the Bangladesh Bank,” he said in an interview with the United News of Bangladesh (UNB).
While highlighting the bank’s achievements, such as remaining the top collector and distributor of remittances over the last 16 years, Faruk also shared with the UNB the bank’s future plans.
“Our achievements in the past year have been truly outstanding,” said Faruk.
In the year, he said, the bank opened 30 lakh new accounts, taking the total number of customers to nearly 2.5 crore. “The total deposit climbed to Tk 177,000 crore as deposits grew by approximately Tk 23,000 crore,” Faruk said.
Islami Bank Bangladesh has the highest deposit in the country, he said.
The bank is also fulfilling the requirements such as the cash reserve requirement, statutory liquidity ratio, liquidity coverage ratio and minimum capital requirement.
The bank collected and distributed a total of Tk 63,100 crore in remittances over the last year, the highest amount of remittances collected by any bank in Bangladesh.
“This success is a result of Islami Bank team’s dedicated efforts, bold initiatives, and, most importantly, the unwavering trust of the customers,” Faruk noted.
Islami Bank Bangladesh made the highest contribution to the collection of record remittances between January and August this year—$21.46 billion.
The collection of remittances is $4.23 billion more than the amount collected over the same period of time last year. During that time, Islami Bank collected and distributed $3.6 billion in remittances.
“I believe several factors contributed to this record inflow. In the post-uprising period, a deep sense of patriotism was reawakened among expatriates,” explained Faruk.
“Those who once participated in the campaign for not sending remittances are now motivated by the urge to contribute to building a new Bangladesh,” he said.
Timely steps taken by the central bank to stop hundi, an informal channel of money transfer, also resulted in expatriates sending more remittances. Money laundering substantially dropped while the dollar exchange rate has stabilized, he said.
The Islami Bank Bangladesh has plans to introduce a ‘Remitter Smart Card,’ which would come with various benefits to expatriates and their family members. The card would allow remitters or beneficiaries to receive priority service from various government departments.
“We consistently encourage expatriates, ensure quick and improved services based on their needs, and build confidence in using secure banking channels. We have plans to help expatriates receive better services at the Dhaka airport and provide priority cards to those who contribute most to remittance inflows,” the MD said.
The secret to the bank’s success in attracting remittance flow lies in some simple solutions, such as establishing remittance lounges in all its branches and running a nationwide awareness program on issues relating to remittance sending.
Bangladeshi expatriates can easily open savings accounts, term deposits, or deposit schemes from anywhere in the world using the bank’s mobile app, ‘CellFin’.
The bank also has innovative solutions such as ‘Mudaraba NRB Savings Bond’, which encourages the expatriates to pursue long-term savings over five- and 10-year periods.
“‘Mudaraba Expatriate Housing Deposit Scheme’ allows expatriates to save money to fulfill their dream of building a home in Bangladesh. In addition, for expatriates and their families, we have launched the ‘Expatriate Entrepreneur Investment Project.’ Under this project, investment facilities are provided on easy terms, ranging from Tk 500,000 to a maximum of Tk10 crore, with collateral,” said Faruk.
“We also have a strong network and distribution channels reaching even the remotest areas. All these factors—customer-centric service, modern technology, and an extensive network—have kept Islami Bank at the top,” Faruk added.
The MD also shared the bank’s ongoing work on developing an artificial intelligence-powered chatbot to give customers uninterrupted 24/7 banking services.
Islami Bank board meeting held
“At the same time, we are increasing the professionalism and efficiency of our customer service officers through regular training to ensure that every customer receives quality and sincere service,” he said.
“What helped us the most to stand out in the banking sector is the policy to listen to our customers. Our priority has always been to fulfill all their needs,” said Faruk.